Indian Companies Trail in Global Patent Race: FAST India Report

A recent study by FAST India and IIFL Securities reveals that Indian companies produce significantly fewer patents than their global counterparts. Despite this, some firms like PI Industries and UPL are performing well on the global stage. The study highlights the need for increased innovation and R&D in India.

Indian companies significantly lag behind their global counterparts in patent output, according to a recent study by the Foundation for Advancing Science and Technology (FAST India) in collaboration with IIFL Securities. The report underscores a striking disparity, with global firms producing 14.1 times the number of patents per billion USD revenue compared to Indian firms.

Despite the overall lag, the report noted that a few Indian companies are performing well globally. Companies such as PI Industries, UPL, and SRF have shown significant performance levels, comparable to global firms in terms of patents by revenue. The study ranks the top firms globally based on patents by revenue, with Korean chemical giant LG Chem topping the list. LG Chem's patent output is 2.6 times that of Swiss multinational Sika AG, which ranks second.

This dominance by global firms highlights a substantial gap that Indian firms need to bridge. 'While Indian firms are competitive with global firms in input parameters, there is still a substantial gap in patents and publications per revenue, underscoring the need for increased focus on innovation and intellectual property,' the report stated. It also noted that global firms produce 3.4 times more publications per billion USD revenue than Indian companies.

Among Indian companies, Tata Chemicals ranks highest in publications by revenue and fourth overall globally, showing impressive performance. Although Asian Paints has a higher absolute number of publications, it ranks 11th overall in revenue-based publications. The American food safety firm Ecolab leads globally in publications per billion USD revenue, with 77 publications, while Tata Chemicals tops among Indian companies with 36 publications per revenue.

The report also highlights R&D intensity, with the American agricultural chemical and seed company, Corteva, ranking first with an impressive 7.0 percent R&D intensity. Among the top five firms in R&D intensity, PI Industries stands out as the only Indian firm, ranking second overall with a 1.1 percent R&D intensity. SRF follows as the second-highest Indian company in R&D intensity, ranking seventh overall.

In the patents per billion USD revenue category, UPL ranked highest among Indian firms, securing the ninth place overall. The report emphasized the need for Indian companies to boost their focus on R&D to compete on the global stage.

(With inputs from agencies.)